Question

Management estimates the company's allowance for doubtful accounts as $200,000, and the auditors develop an estimate that suggests that the amount should be between $230,000 and $250,000. The factual misstatement in this situation is:a. $0.b. $30,000.c. $50,000.d. $40,000.

Answer 1

Opton a $0

Step-by-step explanation:

Factual misstatements There is no doubt of a mistake. There is an instance necessary to dsiclosure the correct information which is missing.

This is not the case as the company has a doubful accounts and disclosure in his statements.

Therefore, this is not a factual misstatement. The company has used an inferior or different method than the auditor.